Organizations are increasingly reliant on third-party suppliers to deliver business-critical products and services to their clients and customers. They are also finding that failures by third-parties can rapidly tarnish their reputations and have significant downstream operational and cost implications.
To understand how businesses are assessing and managing third parties in 2020, KPMG International conducted a survey of 1,100 senior third party risk managment (TPRM) executives from major businesses across 14 countries/jurisdictions and 6 industries.
More than three in four respondents (77%) say TPRM is a strategic priority for their business.
Three quarters of respondents (74%) admit that they urgently need to make TPRM more consistent across the enterprise.
Half of businesses (50%) do not have sufficient capabilities in-house to manage all the third-party risks they face.
Only a quarter (25%) of businesses are using technologies to improve either the workflow automation or monitoring of third parties.
Technology is the most favored investment (61%) that respondents will make when new funding is made available.
Three in four (76%) of respondents overall indicate that funding is available or growing to evolve and strengthen their TPRM programs.